Selling a car prior to CH7

[jlybean]

Hi first of all let me apologize if this question has already been asked and answered but I searched and couldn't find the answer.

My husband purchased an 87 Buick Regal back in 2008 to have as a toy-which I was not to happy about but he did it anyway (he deserves to have toys so I didn't make a fuss) now he's decided I was right and he doesn't need it anymore. Luckily the man he bought it from wants it back YAY! He want to buy it back in the next few months once he gets the money (he is being deployed to Iraq) but wants to get it as soon as he starts getting paid so he will have it when he gets back. We are going to sell it for around $3000-$4000 which is what we paid and put into it to get it race ready(whatever that means) so will this be a problem? We haven't filed yet and probably won't for at least another 3-6 months (have to pay off the lawyer first). We would be using the money towards a newer car for us. Our newest car is 10 years old and we know we need to start thinking about another reliable vehicle.

Is this going to cause trouble for us? I would wait to sell but he wants it soon and I don't want the deal to fall through and be stuck with this car when we can get rid of it.

If we listed the money as income or spent it on necessities would that work? I am not trying to hide the money I just want to get rid of the car while we can.

I will contact my lawyer for sure but just wanted and thoughts you may have

Thanks so much

[BlueBuffalo]

We sold 3 vehicles and a motorcycle, totaled $14,500 in the 6 months prior to filing. we had our 341 hearing yesterday and it never came up. If it had our lawyer told us to say we spent it on bills, which we did. I could account for over $12,000 of it, the rest was everyday items, groceries, utilities, etc. I was surprised the trustee did not ask where the money went since I thought it was a pretty substantial amount.
I believe as long as it is sold for fair market value and it is either spent on another vehicle or living expenses you are okay, but please confirm with your lawyer as far as your state requirements if they differ.

[keepmine]

No problem selling the car and using the money for reliable transportation prior to filing or, paying your bk lawyer, your utilities, rent/mortgage, etc.